The Anticipated Surge in Energy Consumption from AI and Crypto Mining
The International Energy Agency (IEA) forecasts a significant increase in energy consumption from crypto mining and artificial intelligence (AI) in the coming years, with projections indicating a surge of over 30% by 2026.
Renewables as the Primary Power Sources
According to the IEA’s report, renewables are expected to become the primary sources of power by 2025.
Data Centers, AI, and Crypto Mining Facilities
The report highlights that energy consumption by data centers, AI, and crypto mining facilities may exceed 1,000 terawatt-hours (TWh), more than doubling within the specified timeframe.
Crypto Mining’s Electricity Consumption Comparable to Japan
The rise in energy usage from crypto activities is projected to reach the level of Japan’s electricity consumption. Bitcoin mining alone consumed 120 TWh in 2023, up from 110 TWh in 2022. The IEA predicts that crypto mining will consume 160 TWh by 2026.
Concerns about Reducing Electricity Consumption
While acknowledging that crypto mining represents a small portion of global energy consumption, the report raises concerns about challenges in reducing electricity consumption.
Hot Take: AI and Crypto Mining Driving Energy Demand
The International Energy Agency (IEA) predicts a significant surge in energy consumption from crypto mining and artificial intelligence (AI) in the coming years. According to their report, energy usage by data centers, AI, and crypto mining facilities is expected to more than double by 2026. This rise in energy consumption is projected to reach levels comparable to Japan’s electricity consumption. While the report acknowledges that crypto mining constitutes a small portion of global energy consumption, it raises concerns about the challenges of reducing electricity usage. The increasing energy demands from AI and crypto mining highlight the need for energy efficiency improvements to address rising demand.
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